'Nifty 50 gave 135% return in 9 years': Internet reacts to Ranveer Singh's 64% gain in Mumbai real estate deal

A recent news report about a real estate deal done by Bollywood actor Ranveer Singh has in no time turned into a personal finance lesson on internet. 

Moneycontrol reported on Friday that Ranveer Singh sold two luxury apartments in Mumbai's Goregaon area for Rs 15.25 crore. He bought them at Rs 4.64 crore each in December 2014, which translates into 64% return in nearly nine years. 

Netizens were quick to point out that 6% CAGR (Compound annual growth rate) is 'worse' than what one would earn from a fixed deposit. Some said Nifty 50, which is usually the index that moves slowly than its mid-cap or small-cap peers, gave 135% return in the same nine-year duration. 

"Ranveer could have invested in FD instead and got peace of mind as well! Not even considering transaction costs here," said another X user.

One X user said "even mutual funds give better return" referring to their nature of being instruments for long-term investment and returns being conservative by most estimates. 

However, one X user also pointed out that one can't "extrapolate equity returns on all asset classes".

According to the documents accessed by Moneycontrol, the stamp duty for each flat was Rs 45.75 lakh. According to the deal, the transaction was completed on November 6. The flat was sold to an individual residing in the same housing complex. The properties are situated in Oberoi Exquisite, a project by Oberoi Realty, in Goregaon East, close to Oberoi Mall on the Western Express Highway.